Groupon (GRPN) Beats Q1 Earnings and Revenue Estimates

Company Performance - Groupon reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.18 per share, and showing improvement from a loss of $0.65 per share a year ago, resulting in an earnings surprise of 133.33% [1] - The company generated revenues of $123.08 million for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 3.98% and showing an increase from $121.61 million in the same quarter last year [1] - Over the last four quarters, Groupon has consistently surpassed consensus EPS estimates four times and revenue estimates three times [1] Future Outlook - The sustainability of Groupon's stock price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook [2][3] - Current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $125.14 million, while for the current fiscal year, the estimate is $0.05 on revenues of $528.77 million [4] - The estimate revisions trend for Groupon is currently favorable, resulting in a Zacks Rank 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [4] Industry Context - The Internet - Commerce industry, to which Groupon belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, highlighting the potential for growth in this industry [5]